The Co-operators reports $5.9 million net loss for Q2 after Alberta floods

The Co-operators General Insurance Company has reported a consolidated net loss of $5.9 million for the second quarter of the year (ending June 30) compared with a net income of $64.4 million for the same quarter of 2012.

For the first half of the year, however, the Guelph, Ont.-based company reported a net income of $52.2 million, although that is a decrease over the $78.7 million for the first six months of 2012.

“Our financial results reflect the challenges we faced during the second quarter, most significantly the estimated $77 million loss resulting from the catastrophic events in Alberta.,” Kathy Bardswick, president and CEO of the Co-operators commented in a statement.

“Although our loss ratios deteriorated in all lines of business compared to the same period last year, the underlying strength of the company continues,” she added. “We remain very well capitalized, and achieved net earned premium growth in all core lines of business during the quarter.”

“Our thoughts are with all those in southern Alberta and the Toronto area affected by the recent devastating flooding, and we’re proud of the outstanding job our staff and advisors have done in helping them toward recovery,” she also said.

Direct written premiums for the quarter were $612.5 million, up from $587.4 million in Q2 of 2012. Net earned premium was $505.9 million, versus $498.3 million in the second quarter last year.

The combined ratio, excluding the market yield adjustment (MYA) for the quarter, was 112.8% compared to 89.2% for the same period last year.

The Minimum Capital Test (MCT) for the  company was 243% at June 30, above the regulatory minimum requirement of 150%.